The Aryavarth Express’
Agency(New Delhi): On Friday, the price of gold reached a historic peak, climbing above $2,400 per ounce as investors globally seek secure assets amidst increasing uncertainty. The spot price of gold escalated by 2.4% to an unprecedented $2,431.52 per ounce, though it later receded slightly. This increase caps a 4% rise this week and a notable 16% surge since the start of the year, surpassing last year’s total gain of 13%.
The current upswing in gold prices is largely due to a surge in demand for safe-haven assets, fueled by escalating geopolitical tensions in the Middle East. This regional instability was intensified by recent developments, including a critical statement from US officials who suggested that Iran might initiate a significant military action against Israel in the immediate future. This forecast follows threats from Tehran of a severe retaliation for the killing of two Iranian generals by Israel earlier in the month.
Chris Gaffney, president of world markets at EverBank, emphasized to Reuters that the primary catalyst for the gold market’s rally is the heightened tensions in the Middle East, which overshadow any negative factors. Rhona O’Connell, head of market analysis at StoneX Financial Ltd., echoed this sentiment, highlighting the pivotal role of geopolitical risks in driving gold’s value, particularly in a year crowded with significant electoral events.
Additionally, robust purchasing by China has played a critical role in sustaining high gold prices. In times of financial uncertainty, gold is traditionally sought after as a hedge against risks and as a reliable store of value, a practice that dates back thousands of years encompassing various global crises.
Other precious metals have also experienced price increases, with silver climbing 4% to $29.60 per ounce—its highest since early 2021. Likewise, palladium saw a 2.7% increase to $1,075, and platinum ascended past the significant $1,000 per ounce mark, reaching its highest price in nearly four months.